Improved Growth Figures Ease Recession Fears

An improvement in Israeli economic growth figures released on Sunday has eased concern about a possible looming recession, Globes reported.

The latest figure for growth in the first quarter, published by the Central Bureau of Statistics, is 1.7 percent. The original figure of 0.8 percent was subsequently revised to 1.3 percent.

The latest figure for Israeli exports is an annualized 5.3 percent decrease, compared with the previous decrease of 8 percent published a month ago.

Business product grew 0.8 percent in the first quarter, compared with the previous figure of 0.2 percent. Private consumption was up 5 percent (4.8 percent), and investments in fixed assets jumped 14.6 percent (16.2 percent).

The fresh data indicate that recession is less likely. In Israel, a recession is defined as two consecutive quarters of negative per capita growth. 1.7 percent growth is virtually the same as Israel’s 1.8 percent population growth, meaning that per capital growth is zero, but not negative.